Online bargain shopping seems to be the way Aussies are dealing with cost-of-living pressures, with online non-food related retail sales surging nearly 11 per cent this year following a flat few years.
KPMG senior economist Terry Rawnsley notes that while figures show many areas of the retail industry remain weak, online retailers have enjoyed a strong year compared to traditional bricks and mortar stores.
“But retail stores are beginning to bounce back, with both clothing, footwear, personal accessory and department stores enjoying gains as our wardrobes have shifted to winter apparel following unseasonably warm weather in April,” he says.
Household goods retailing remained flat (0.0 per cent) in May, as gains in hardware (+1.0 per cent) and furniture (+0.4 per cent) were offset by a 1.1 per cent fall in electrical and electronic goods.
Online sales in seasonally adjusted terms fell 0.6 per cent in May, following a 0.4 per cent increase in April. This is the first time online sales saw a deduction in growth rate since September 2024. Despite this monthly decline, seasonally adjusted online turnover is up 8.4 per cent through the year, with food-related online sales up 0.7 per cent and non-food down 1.1 per cent.
In original terms, total online sales reached $4.38 billion in May, now accounting for 11.9 per cent of total retail turnover, up from 11.4 per cent a year earlier.
“Clearly Australians are still being very cautious with their spending right now but there is cause for optimism, with annual turnover for retailers rising by 3.3 per cent compared to a year ago, pointing to a gradual recovery supported by interest rate cuts.”
Indeed, Australian Retailers Association (ARA) chief executive officer, Chris Rodwell says while May results are encouraging, retail spending remains subdued.
“May growth is slightly lower than what we’ve seen in recent months, however, performance continues to track modestly above 2024 growth levels,” he comments.
“While inflation has metered back, with the CPI figure for May coming in at 2.1 per cent, consumer confidence remains soft.”
“Retail recovery is intrinsic to our economic recovery. As a sector which employs one in 10 Australians, we want to shift gears to see retailers move out of survival mode into truly thriving and helping power our economy.”
